Questions & Answers

1. Consider the following statements regarding Senior Citizens Savings Scheme (SCSS).

1)Only individuals who are 60 or above the age of 60 can avail the benefits of Senior Citizens Savings Scheme.
2)Among the various small savings scheme, Senior Citizens Savings Scheme offers the highest rate of interest.
3)Interest earned from the scheme is fully taxable.
Which of the above statements is/are correct?

a) 1, 3
b) 1 only
c) 2, 3
d) 1, 2, 3

Solution: c)

• With high returns, Senior Citizens Savings Scheme (SCSS) is the simplest investment options for those who are above the age of 60. Designed to benefit the senior citizens, the scheme was launched in 2004. Available through several public and private sector banks and India Post offices.
• Any individual who is 60 or above the age of 60 can avail the benefits of Senior Citizens Savings Scheme. Those who have attained the age of 55 years or more but less than 60 years can also open their accounts under this scheme if they have opted for voluntary retirement. Defence personnel who are above the age 50 can also avail this benefit.
• Among the various small savings scheme, Senior Citizens Savings Scheme offers the highest rate of interest.
• Accounts opened under Senior Citizens Savings Scheme has a tenure of five years. One can extend the account for another three years after it matures.
• Investments of up to ₹1.5 lakh is eligible for deduction under section 80C of the Income Tax Act. However, interest earned from the scheme is fully taxable. In case, the interest earned is more than ₹40,000 in a financial year, tax deducted at source (TDS) is applicable to the interest earned

2. Consider the following statements regarding Automatic Exchange of Information (AEOI).

1)Automatic Exchange of Information (AEOI) is a periodic transmission of bulk taxpayer information by the source country to the residence country.
2)It is the exchange of information between countries without having to request it.
3)It is usually carried out under Common Reporting Standard (CRS)of OECD.
Which of the above statements is/are correct?

a) 1, 2
b) 1, 3
c) 2, 3
d) 1, 2, 3

Solution: d)

• Automatic Exchange of Information (AEOI) Regime between Switzerland and India kicked off from September 1, 2019. Under this mechanism, India will start receiving information on all financial accounts held by Indian residents in Switzerland, for the year 2018.
• It is systematic and periodic transmission of “bulk” taxpayer information by the source country to the residence country, which is possible under most of the Double Taxation Avoidance Agreements (DTAAs) and Multilateral Convention on Mutual Administrative Assistance in Tax Matters (MAC).
• It aims to reduce global tax evasion.
• It is to be carried out under Common Reporting Standard (CRS) of OECD.
• AEOI is the exchange of information between countries without having to request it.

3. Consider the following statements regarding Cyberdome.

1)It is the National Cyber Coordination Centre’s premier facility dedicated to prevent cybercrime and mitigate cybersecurity threats.
2)Cyberdome has developed cyber-surveillance tools to detect and convict those responsible for industrial espionage.
Which of the above statements is/are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2 only
(d) Neither 1 nor 2

Solution: b)

• Cyberdome is based at an inconspicuous office on the Technopark campus here in Thiruvananthapuram. It is the Kerala Police Department’s premier facility dedicated to prevent cybercrime and mitigate cybersecurity threats to the State’s critical information infrastructure.
• Cyberdome has developed cyber-surveillance tools to detect and convict those responsible for industrial espionage.
• Cyberdome has used social engineering as the lynchpin of its policing strategy to snoop on radical groups that use the net for extremist activities.
• Cyberdome has launched a covert cyber-surveillance and infiltration programme to crack down on child pornography.

4.Kathmandu Declaration, sometimes seen in news is related to

a) South Asian Association for Regional Cooperation (SAARC)
b) Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC)
c) Non-Aligned Movement (NAM)
d) Group of 77 (G-77)

Solution: b)

Fourth BIMSTEC summit was held in Nepal. The Fourth BIMSTEC Summit concluded with an 18-point Kathmandu Declaration. The declaration is expected to enhance the effectiveness of BIMSTEC Secretariat by engaging it in various technical and economic activities in the region.

5. Consider the following statements regarding Asperger syndrome (AS).

1)It is a developmental disorder characterised by significant difficulties in social interaction and nonverbal communication.
2)People with Asperger syndrome often display restricted or specialized interests.
3)It causes brain cells to degenerate and die.
Which of the above statements is/are correct?

a) 1, 3
b) 1, 2
c) 2, 3
d) 1, 2, 3

Solution: b)

• Asperger syndrome (AS) is a developmental disorder characterised by significant difficulties in social interaction and nonverbal communication, along with restricted and repetitive patterns of behavior and interests.
• Alzheimer’s disease is a progressive disorder that causes brain cells to waste away (degenerate) and die. Alzheimer’s disease is the most common cause of dementia — a continuous decline in thinking, behavioral and social skills that disrupts a person’s ability to function independently.

6.Consider the following statements about Stockholm International Peace Research Institute (SIPRI).

1)SIPRI is a United Nations organisation dedicated to research into conflict, armaments, arms control and disarmament.
2)According to a report by SIPRI, India was the largest importer of major arms in 2014-18.
Which of the above statements is/are correct?

a) 1 only
b) 2 only
c) Both
d) None

Solution: d)

SIPRI is an independent international institute dedicated to research into conflict, armaments, arms control and disarmament. Established in 1966, SIPRI provides data, analysis and recommendations, based on open sources, to policymakers, researchers, media and the interested public.